Huawei chief financial officer Wanzhou Meng is facing extradition to the United States after being arrested in Canada on suspicion of violating U.S. sanctions on Iran, the Globe and Mail reports.
Why it matters: If Meng is extradited, it will mark the first time a Huawei official will face U.S. authorities.
The backdrop: Chinese phone makers Huawei and ZTE have been caught repeatedly violating U.S. sanctions on Iran and North Korea, but President Trump reversed a ban on American companies doing business with ZTE at Chinese President Xi Jinping’s urging.
Our thought bubble, via Axios contributor Bill Bishop: This move can not be overstated. If the U.S. says Huawei violated Iran sanctions, like ZTE did, a ZTE-like ban for U.S. suppliers to Huawei is not impossible. It may not go that far, but expect investors to shoot first Thursday and dump shares of big Huawei suppliers, as they did with ZTE.
Go deeper: The ZTE precedent in Trump's trade war...